tv Nightly Business Report PBS October 7, 2016 7:00pm-7:31pm PDT
♪ this is "nightly busine wita not too hot, not too cold. today's jobs report may not be just right, either. and now it's up to the federal reserve to decide if the hike is fast approaching. hurricane matth hits florida, hard. we'll assess the damage and give you the latest on this mammoth storm. and bright idea. meet the entrepreneurs who are taking the frustration out of pharmacy visits, so you can get the medicine you need quickly. those stories and more tonight on "nightly bu for friday, oct. good evening, everyone. i'm tyler mathisen, sue herera has the evening off. we begin tonight with jobs. and an issue important to wall
street, main street and, of course, to washington. today we learned that the economy created 156,000 of them in with the unemployment rate ticking 5%. but the monthly report was a bit puzzling. like the number calling it solid. others describ it as disappoi and lackluster. and some just said it was modest. but what does the fed think of this lates? hampton pearson takes a loo >> reporte in september, job growth slowed for a third straight month. from a revised high of 252,000 jobs in july, a big drop to just 167,000 in august, and an even further slide with employers adding just 156,000 new workers . good-paying professional and business servi jobs led the way with 67,000 new hires. hourly wages, now just under $26 an hour are up 2.6% year over
year, and are showing signs of accelerati today fed vice chair stanley fisher said today's jobs report was pretty close to goldilocks. >> what it did today, the participn rat went up, the unemployme rate went up. those two things are fine. it means employment was going at a rate that is fully consistent with keeping unemployment declining. somewhat further. >> reporte more than 440,000 americans did com back into the job market last month, but only about 95,000 got hired. triggering an uptick in the unemployme rate t. leading econo point out it's the slack in the labor market as a reason to hold off on raising inter >> this recovery has more room to run, especially when there is no hint of inflation yet. >> reporte it does nod appear today's jobs report has moved
the needle as far as inside the fed on the timing for raising rates. loresta mester says the slow down in job growth does not mean monetary policymakers shou. >> i see that the inflation measures are moving up. we have to be forward-looking. in terms of our two goals, monetary policy goals, it takes -- makes sense to move up the rate another 25 basis points. >> this is the last jobs rept bef the fed's next policy meeting in early november, and today's weaker than expected report decreases the likelihood of a rate hike just one week before the presidenti elections. for "nightly busine" i'm hampton spear pearson in ethan harris joins us to talk more about today's jobs report and what he thinks it will mean for the fed. he's co head of economic global research at bank of america, merrill lynch. to have you with us. i'm want to look at one number with the number, and that was the number of new job seekers
who came sort off the bench and into the m that was one of the reasons the unemployme rate went higher, but isn't that really a good sign that people are feeling more optimistic about their job prospects? yeah, i mean, this was a good report. mean, you had two pieces in it i liked. one was th wag increase, we're finally getting out of this 2% rut we've been in for wage growth. and the other one was the participat rate. people coming back, feeling more optimistic abo the job market, an willing to look for a job. so that's a sign we're in the la stage of -- stages of healing in th labor market. >> so does this imply anything to you about the third quarter economic growth numbers? you know, we've had growth that's been 1%, 1.5%. is the third quarter likely to be better? >> yeah, i mean, we had a pretty soft start to the year as companies cut back a lot on their inventories and cut back on production. but the third quarter is looking
okay. we're looking at growth close to 3%. these jobs numbers are consistent wit that growth. the economy has been looking soft to start the year off. but we're starting to get back on track. >> so what's next for the fed and when? >> i think they're very likely to hike in december. somethin has to come along to stop them. we saw at the september meeting they got close, and they had several dissenters at the meeting. people still on the fence at the fed just need a few more months to decide. i do think the fed will hike in december. talk to me a little bit about what if any impact this mammoth storm might have on economic numbers in the fourth quarter? does it mean higher economic output, lower? nothing? >> well, what happens when you have a storm like this is that there's a temporary disruption to activity that then comes back on board. and usually the rebuilding effort slightly more than offsets the weakness.
so when you tend to get in the data, the month of the storm, you may see a little weakness in the numbers like fewer housing starts and a little less retail sales and the regions impacted. once they get back in business, people, you know, move back to their prior activities, and you get the rebuilding spending. storms, ironically, are actually slightly stimulative in the long run. >> thank you very much. ethan harris with bank of america, merrill lynch. > stocks did close lower following the release of the employment rept and a slide in oil prices. the dow jones industrial average fell 28 to 18,240. nasdaq off 14. the s&p 500 lost 7. for the weeks, stocks suffered their first weekly decline after three straight becomes of gains. w battered parts of florida, though it could ha been a lot would say. that said, there was a tremendo amount of damage and power loss.
morgan bre is in daytona beac >> reporte this is atlantic avenue in daytona beach. as the worst of hurricane w has pushed through here, and is heading north along the coast, we're getting an early look at some of the damage here in the area. now we've got cars beginning to move through. mainly first responders, a lot of fire trucks, police cars and utility trucks. the street signs -- or streetligh, i should say, are still out on the next block. you even have a business where the entire roof was torn off. throughout the area, we have debris everywhere. including tak a look at this big piece right here behind me. where did this come from? across the street. the hilton hotel. this is as part of the facade with ripped off during the storm. those two holes flanking the signage were windows. at least one of those windows came crashing down, and smashed
to smithereens over here in the landscapin this is the hotel where we have been staying all day, and this is just the damage in the front. on the other side of the hotel, the beachside, even more damage. you have flooding due to storm surge, earlier in the day, waves that came up over the beach wall, ripping the guardrail on that beach wall. we had a dock that detached and floated down into the surf. the historic clock tower sustaini damage, as well. something of a landmark in this area with some of the clock faces cracked and pushed in. and all of this is just the outside of this particular property insid damage, as well. water coming through the light fixture and in the lobby. a lot of soaked towels. not to mention, even on the upper floors, water in some of the carpet. staffers here saying that initial take on the damage for this property, as they expect, this hotel could be closed for some time. this is just one of many in this
area, and throughout the eastern coast of florida, that have been affected by for "nightly businereport," i' morgan brennan in daytona beach, florida. on its path and it does this evening, people are bracing thems in points north. scott cohn is in the port city of savannah, georgia, tonig >> reporte the center of hurrican is still several hours away from savannah, but we're already feeling the impact. the hope is that the storm will stay offshore, like it did in florida. but they're not taking any chan federal troop pouring into the streets of savannah, to enforce a dusk to dawn curfew, as thousands of evacuees prepare to flood out. >> let's not underestimate how dangerous thi hurricane can be. >> reporte in savannah, some people walked for miles to catch the last bus out of town to red cross shelters. >> me and my two boys, i don't where they're taking us, but we came from over off
victory -- by the truman freeway, by whole foods, and we walked down here to get to the transit cente so we can get on the bus today. >> reporte how a walk is it? >> we left our house at 6:00 this mor. >> reporte the biggest worry is water. more than a foot of rain in the forecast on top of the storm surge. wall of water that comes with a hurricane. >> the surge is what scares us. if you get an 11-foot surge and the road out there -- highway 80 is about 2 feet above -- 2 feet above the ocean, you've got an issue. the port of savannah, one of the busiest in north america, is shut down. no operations on or offshore until at and it's not just people evacuati the air force moved a-10 fighter jets from southern georgia to the florida pan handle and out of harm's way. as many as half of people evacuated. there is no telling when they'll get back home. scott cohn, "nightly busine savo
>> still ahead, epipen maker mylan settles with the justice departme and the stock soars in late-day trading. mylan agrees to pay $465 million e justice department charg it overcharged medicaid for its epipen treatment. as part of the deal, mylan does not have to admit any wrongdoing. result, mylan lowered its full year earnings outlook, but shares of the stock rose in after hours trading because some expected the settlement amount to be larger. the u.s. has officially accused russia of political hacking to interfere with the upcoming elections. the office of the director of
national intel and departmenty y the confident tha russian government directed the recent attacks against the democrat natio c the u.s. added that given the scope of the breeches, only the most senior russian officials could have been behind them. the election is less than a month away, and the race is tight in the key battleground state of ohio, where there is a clear div. >> i'm going to vote for hillary. >> reporte are voting for hillary? >> i think she is the better what's your biggest issue? >> competency. >> i'm going to vote for -- not for clinton, that's for sure. >> you're not voting for that means you're voting for donald trump? >> yeah. >> r why are you voting for donald trump? >> he aligns with my political the economy maybe the key issue in the buckeye state, that's where we find andrew ross sorkin. >> reporte with the presidenti ele just a month away, ohio is living up to
its status as a battleground state. >> do relove ohio? do we love o >> hello, akron! >> winning the rust belt state always vital in getting to the white house. no republican since lincoln has won the presidency without winning ohio, and no democrat since john f. kennedy. the buckey state voted blue out of the last three presidential elections. is now slightly ahead in the polls. clinton surrogates say his temperam is still a major factor for undecided vot >> it's about this nation. it's about donald trump, who has offended women, who has made a mockery out of reporters who have disabilities. i ha no problem defending my surrogate. the economy is a key platform, while candidates stump here. ohio's unemployment rate is below the national average. but jobs are still top of mind for voters in columbus, as are taxes. millennial are now just as large a political force as baby boomers. generations making up roughly 31% of the electorate.
focused on some different issues. >> student debt is really important for people our age, something we' concerned about after graduating and something we want to see talked about. >> i don't that i feel safer abroad than i do eight you know, i'm going into the marine corps, and it's just -- you know, eventually the next president is going to be my boss. i want to know who is going to do a better job. >> the candidates face off again on sunday, which could end up deciding which of the 18 electoral votes will go. for "nightly busine report," m andrew ross sorkin in columbus, ohio. >> as andrew just mentioned, voters in ohio and across the country will watching sunday's debat to hear the candidat detail their positions on jobs, taxes, trade and other eco john harwo tells us what hillary n and donald trump are likely to s when they go head-to-head. >> they may not be the focal point of this very unusual campaign, but economic issues did play a significant role in
the first trump/clinton debate nearly two weeks ago. >> we need to have strong growth, fair growth, sustained growth. we also have to look at how we help families balance the responsibi at home and the responsibi at business. >> you are going to prove one of the biggest tax increases in history. u are going to drive business out. your regulations are a disaster. and you're going to increase regulations a over the place. and, by the way, my tax cut is the biggest since ronald reagan. >> so here are some of the key economic specifics that may come up in their second debate on sunday nig first of all, on taxes, hillary n wants to raise top rates on states and high-income earners. donald tru wants to slash taxes across the board, even though he would significantly expand the deficit. on trade, hillary clinton says we need smart, fair trade deals. she says she doesn't support the transpacific partnership. donald t says rip up nafta, renegotiat it and get rid of the tpp. on regulation.
hillary cln wants to build on obamacare and the climate change efforts by president obama, both domestically and around the world. donald tru says end obamacare, lift climate change regulations, get rid of the paris agreement among nations around the world. the stakes are especially high for donald trump in this debate because of how poorly he did the first time around. check out these poll numbers. in the national average of polls, before the first debate, he trailed hillary clinton by roughly 2 points. now more than ten days later, he trails by more than 4 points national and is behind almost all the key battleground states. for "nightly businereport," m john harwood in washington. >> boeing lands a big order from the middle east. and that is where we begin tonight's mart focus. the company has to deal with qatar airways for up to 100 planes. e contract for 40 wide-bodied jets and letter of intent for 60 more narrow-body aircraft. the full order is completed the deal would be worth about
$18.5 billion. boeing shares slipped, nonetheles a half percent to $133.58. verizon reportedly wa billion discoun on its deal to buy yahoo! or scrap it all the new york post says verizon wants to lower the nearly $5 billion price tag on the pending deal, because of yahoo!'s lack of transparency over its recent data breach and allegations it spied on e-mails for the u.s. verizon shares were off a fraction at $49.92 while yahoo! and camping world pricing .22 more tha 11 million shares at $22.each, mid point of the expected offerin range. the recreational vey raised a quarter billion dollars and said that profits from its initial public offering will be used to trim debt. shares rose 2% to $22.50 on the session. pivotal research downgraded
tyson foods from a buy to a sell, saying a class action lawsuit filed early this month against the meat producer over a potential price fixing scheme could pose a problem for the company. pivotal also slashed its price target to $40 a share, down from $100. tyson off nearly 9% at $67.75. market monitor likes metals and energy stocks among others and has names she says have rebounded nicely. this is the first time on t program so please welcome donna wils welcome. to ha you here. >> thank you. >> so what did you think of the jobs number today? the overall report? >> pretty much uneventful. i know the market reacted somewhat negative to it, but generall i thi that when you look under the hood and look at the details, it was a solid report. >> it's been a pretty good year for the market, and you've got some stock picks that have done pretty well. and in one case, has doubled so far this year. let's start with your big one,
which you say is kind of a more safety play. it's going to split in two soon. tell me about it, which it is, and why. >> alcoa. so we like alcoa. it has really strong -- manageme has made some really good decisions in terms of splitting the company into two separate organizations that is going to -- should lead to good, kind of value play. going forward. unlock the value there. >> better it boy it now or wait until it splits. >> >> oh, no. >> now is the time to go. >> absolutely. >> you think this transformation is a good move. >> i a good move, and not just a commodity play. they are going to truly benefit from the growth in the aerospace industry. d that's a key component of their growth strategy. >> number two is a mid cap stock, we'll call alcoa big cap. it's called commercial metals. tell us what they do and why you like it. >> commercial metals primarily makes steel bars that reinforce
concrete, masonry structures. we believe that it's a great they're also going to benefit from anti dumping tariffs that were leviedied this year against china so it's going to create a more level playing field for them here in the u.s. blocking china and allowing them to compete. and really, benefit from that infrastruc in the buildout in the u.s. sun belt. >> these first two picks, alcoa down over the past 12 months, commerci metals up, we'll call them flat-ish, okay? you're next one,in cana, up 100% this year. or one year out of 28%. but it's a strong performi stock. >> it's a strong performing stock. wh we really like about this name, they have great acreage. so good acreage, good producing acreage. they just did a equity offering,
and that has raised significant capital for them to shore up their balance sheet, invest in future growth and from that perspectiv we believe that the next three to five years, they have huge potential to be -- to produce from their wealth. >> anna, special metals and alcoa. ap it. >> thank you. with invest co kwaptive strategi to the pharmacy and fid out there is a problem with your prescripti mig not be covered, or even paid for at all? one startup found a solution and turned it into a fast-growing business. idea is next ♪
health insurer anthem says it will not cover the f improved drug to treat muscular y as reported. the drug was okayed last month, despite a dispute within the agency over its effectiveness. anthem, the nation's second largest insurer, calls the drug experiment sh fell 6% on this news, and says it is aware of anthem's statement. as for other insurers, united health car and cigna say they are covering it. humana is evaluating the clinical merits of the more and more prescription medication require so-called prior authorizations. these days, 250 million times a year, insurance compa do take a second look before coverage is approved or declined. that sort scale got the attentio of two entrepreneurs from ohio. th had the bright idea to bring the approval process into the 21st century. ♪
this is peter. >> even a small town pharmacist like peter in kent, connecticut, sees it happen. prescripti placed on hold, requirin prior authorizations or p.a.s, before insurance s will pay for medication >> all of the time. ever there's at leas one every day. if not five every day. >> prior authorizations force doctors to decide whether to prescribe som else, or ask an insurance company for an approval. that used to mean phone calls, forms to fill out, and faxes to be sent. >> it could be a week or two type of situation. and, you know, sometimes patients need medication. >> enter cover my meds. it's software that supplies the forms, then auto populates them with patient records. once it hits send, it helps put pharmacist doctors and insurancs all on the same page. now d in columbus, ohio, cover my meds was created by a former pharmacist and
software developer. >> that's what patients said when they're frustrated with a process. won't they just cover my med? >> reporte columbus native matt was building software and websites before he teamed with one of his top customers, sam rogen, back in 2007. at the time, rogen was helping to run a successful pharmacy benefi manager. >> the ah-ha moment for us is when we decided to put a prior authorizn on multiple sclerosis drugs. we found 40% of our patients never went on the drug. >> he learned that most feared they couldn't afford to pay for the drug without coverage. it became imperative then to simplify and speed up the approval process. instead of sending patients off to fend for themselves, rogen wanted to tell patients, okay, we've got this >> when a doc has an all-drug, all-payer solution, that's when the adoption and viral adoption model really came about.
>> we have now helped 42 million people. cov my meds is free for patients and a half million prescribs who use it. it's also free for the 47,000 pharmacies using it. it's paying customers are insuranccompan and the pharmacy benefits managers who hope that cover my meds can help reduce the costs that build when patients don't take their medicine cover my meds won't discuss exactly what it charges, saying only that it cuts the average cost of each prior authorization request from roughly $40 to less than $10. >> we picked a problem that can be solved in a way where everybod wins. the insurance compa are very important cus for us. they'r really the way this all has to work. >> it's been working and selling, t cover my meds doesn't quibble with reports that last year's sales were roughly $100 million. but the end of 2016, they'll have more than 500 employees, and with insurance compa
re approval on more and more drugs, an even higher purpose. company can become que large, because we're solving a problem that is daily life. >> more and more states are requirin standardized electron forms for the prior authorizat and the cover my meds model has often been a key aid to lawmakers during the painstakin process of moderniz o and that is "nightly for tonight. for sue herera, i'm tyler mathisen. for watching. have a great weekend, everybody. see you here on m gwen: storms of the political
kind, as the two major presidential candidates prep for their second big debate, tonight on "washington week." >> i thought tim did a great job. every time he tried to push mike pence to defend what donald trump had said and done, pence just tried to get out of the way. donald trump was happy, then he was unhappy because mike pence did so well. he was so good. candidates as armchair analysts, leaving much of the week to their lieutenants. we trust hillary clinton is president